Belkin: Acquisition of Linksys Will Result in Ultimate Networking Products

The merge between Belkin and Linksys could result into creation of ultimate networking products, which will combine advanced Wi-Fi administration and security with robust quality-of-service features. But while the products will combine strong sides of both companies, they will be marketed under both Belkin and Linksys brands.

“Belkin’s employees strive to understand user needs, and deliver a good user experience. The philosophy at Linksys is not fundamentally different, but each company has different strengths. Linksys did [the cloud-based router administration software] Smart Wi-Fi, and we have done great work in terms of quality of service [QoS describes the ability to assign priorities to different data flows, so that gaming and video traffic, say, are given priority over downloads]. Where do those things come together? We think the ultimate outcome of putting the two companies together will be ‘1+1=3’,” said Brian Van Harlingen, chief technology officer at Belkin, in an interview with PCWorld.

Belkin, a private company specialized on computer accessories and networking products, last week said that it had entered into an agreement to acquire Cisco’s home networking business unit, including its proven products, technology, well-known Linksys brand and talented employees.

Belkin intends to maintain the Linksys brand and will offer support for Linksys products as part of this transaction. All valid warranties will be honored by Belkin for current and future Linksys products. After the transaction closes, Belkin will account for approximately 30% of the U.S. retail home and small business networking market. Linksys will also enhance Belkin’s capabilities to meet the needs of the service provider space and small business users.

“We are still working on long-term plans and product road maps, but Linksys goes back a ways and [the brand] had some real credibility in the SMB space. We see some opportunity there,” said Mr. Van Harlingen.

Belkin and Cisco intend to develop a strategic relationship on a variety of initiatives including retail distribution, strategic marketing and products for the service provider market. Having access to Cisco’s specialized software solutions across all of Belkin’s product lines will bring a more seamless user experience for customers. Merging the innovation capabilities of Linksys and Belkin provides a powerful platform from which to develop the next generation of home networking technology.

“We intend to merge the two companies. Linksys has incredibly talented people in key roles. But we will be looking for places, where there are opportunities, where it makes sense to leverage - I guess redundancy is the word,” explained the CTO of Belkin.